Quote:
Originally Posted by MaDalton
yeah - but thats not what i meant... based on current numbers - how much tax money would be raised this way? because i have the feeling that serious spending cuts will not happen and also at some point all that borrowed money has to be repaid when your plan only covers 50% of what is spent right now, it doesnt make much sense. unless you are willing to set the flat tax at 30% and the sales tax at 10% or 15% (over here sales tax is 21% btw - but you don't notice cause all prices always include it already - you never see the net price)
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With tax reform (not just changing a percentage by 3 points) comes the importance of reforming fiscal policy as well. Some kind of balanced budget agreement would be needed and the rates would be tied to those budgets. The idea of running things on a year to year budget is beyond retarded. You can't run a candy store on a year to year budget let alone the government of 300 million people. They ought to be able to lay out a sensible fiscal policy showing a trajectory of tax rates. I'd gladly agree to a higher percentage right now if there were real safeguards in place to show that the deficit would drop, spending would become more efficient and the tax rates would decline over time.
The system is badly broken and needs to be fixed, not just tinkered with idiotically. Like most large changes I would expect it to be phased in rather than suddenly shifted.